Malaysian court orders AirAsia to pay airport operator millions in service charges

Malaysian court orders AirAsia to pay airport operator millions in service charges

Malaysia-based AirAsia is the region's biggest budget carrier by fleet size
File photo of AirAsia planes. (Photo: AFP/Manan Vatsyayana) 

KUALA LUMPUR: The Kuala Lumpur High Court has ordered low-cost carrier AirAsia to pay the country's airport operator RM40.73 million (US$9.90 million) for unpaid passenger service charges (PSC), which the airline refused to collect for six months last year.

In a filing to Bursa Malaysia on Thursday (Jul 18), Malaysia Airports Holdings (MAHB) said AirAsia must also pay RM972,381 in late payment charges to Malaysia Airports (Sepang) (MA Sepang), a wholly-owned subsidiary of MAHB.

“The court granted summary judgement in favour of MA Sepang in all three civil suits filed against AirAsia and AirAsia X," it said.

“The summary judgement order further included a declaration for AirAsia to pay MA Sepang the PSC rates that have been gazetted."

Air Asia was also reportedly ordered to pay RM24,000 in costs for the three suits.

AirAsia has previously refused to implement the PSC increase, which went from RM50 to RM73, citing the lower level of service at Kuala Lumpur International Airport 2.

In a separate filing, the carrier said the court has allowed the judgement application filed by MA Sepang for RM8,000 per application and dismissed AirAsia X’s striking out application with no order as to costs.

“We will be taking necessary actions to preserve our interests, including appealing against said decision and applying for a stay of execution,” the airline added.

Source: Bernama/ga(hm)

Bookmark